Robinhood to pay $45M SEC settlement over data breach, other violations
wsj.com
wsj.com
Robinhood got off pretty easily here, looks like a settlement was rushed so it wouldn't pass onto the next administration.
> The messaging apps probe appears to have settled for $8 million, well below the $100 million we anticipated based on a $104 million accrual in 3Q23
> Fines connected to a 2021 data breach came in at $2 million, consistent with our view they'd be below $10 million.
They have a few other lawsuits on the go at the moment.
One is a class action lawsuit over them taking higher Payment for order flow that lowered the execution quality that their clients got.
Bloomberg is estimating this as 70% likely to be settled in Robinhoods favour
The other is their cash sweep lawsuit where they are accused of paying unreasonably low rates on their cash sweep products. Here they are not alone as many of their peers are also being sued for the same issue.
Schwab, for instance, settled with the SEC for $187M for this in 2022.
Glad we do so much to keep corporations accountable in this country!
It is not a measure of how people feel.
Stonks are about how people feel.
The only question is whether "people" mean individual investors or fund investors.
Furthermore, a good fund will make money whether the market is going up or down, often aiming for stable returns over consistently positive alphas.
There are definitely some fractal feedback loops regarding expectations, sentiment and price changes, but generally speaking you're looking at projections of future value when supply or demand changes. If a rational investor thinks their portfolio is going to tank because of some event, they're going to sell off some or all of the affected securities, regardless of their desire for the security to continue rising in price.
So the hush money the SEC wanted is lower then expected, and price of stock should go up.